Why AeroVironment Inc. (AVAV) Hit a Record High


 
 
12:18 09/06/2018

AeroVironment Inc. AVAV  is one of the big movers in the drone industry, with experience helping both the military and commercial sectors make the most of the technology.

Yet, despite all of the excitement surrounding drones, the company wasn’t able to convert that into results, as quickly as investors would have liked. But they got more than they bargained for this week, as the company blew earnings out of the water.

Even better, the company is more confident than ever about the future.

In its most recent quarter, the company posted EPS of $1.14, compared to a loss of $0.25 year over year. That was above estimates for 20 cents. Revenue soared 127% to $78 million, topping estimates of $73 million. Net sales were $27.2 million, which is a marked year over year improvement form a $5.86 million loss.

Part of the reason for the reversal of fortune was AVAV’s decision to sell off its efficient energy systems division. Before doing so, the company split its attention between drones and electric vehicle charging stations.

According to CEO Wahid Nawabi, "With the divestiture of our efficient energy systems business, we have transformed AeroVironment into a future-defining technologies solution provider serving large and growing global defense, telecommunications, and commercial markets."

He also pointed to the strong demand for its small unmanned aerial systems and tactical missile systems as helping to drive the company forward.

No wonder the stock just hit an all-time high of $102.98 from a March 2018 low of $45. We wouldn’t be surprised to see AVAV at $150, near-term.






This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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